Warren Buffet: 'What's Coming Is WORSE Than A Housing Crash'

According to Warren Buffett and Charlie Munger, what's coming is worse than a housing crash. However, this market bubble they're referring to didn't materialize out of thin air. In fact, throughout the video, we'll explore some clips of what they had to say about the problematic real estate market conditions years ago.

We'll discuss what will happen in the coming months and years in terms of this precarious housing market by analyzing the latest data, coupled with the data we've had since the late nineties.

[bernadofelix]

Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.

[PatrickLloyd-]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[tommychestnut]

Have you heard about the unemployment applications surging recently? It's becoming a real concern.

[shellylofgren]

Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

[albacusBC]

I’m closing in on retirement, and I'd love to move from Minnesota to a warmer climate, but home prices are ridiculous now, my stock portfolio has lost *$120K* and mortgage price skyrocketing on a roll... do I wait for a crash, or diversify my assets into stock

[gingerkilkus]

The fact that there is already an excessive amount of demand awaiting its absorption, despite how everyone is frightened and calling the crash, is another reason why it is less likely to occur that way. 2008 saw no one, at least not the broad public, making this forecast, as I'll explain below. The ownership rate was noted to have peaked in 2004 in the other comment. Having previously peaked in the second quarter of 2020, we are currently at the median level. Between 2008 and 2012, it dropped by 3%, and by the second quarter of 2020, it had dropped from 68 to 65.

[BateserJoanne]

It's hard to predict the future until we see this month’s inflation results. However, historical data consistently show that stocks tend to outperform bonds in the long term. Therefore, I'm staying in the market and focusing on selecting high-quality stocks. The challenge lies in identifying these stocks.

[Campbell]

The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?

[PaulHarsch]

Nice summary and 100% correct. I've been a real estate broker for 49 years and watched all of this evolve. Residential real estate morphed from being a roof over one's head to a chip on a gambling table; terrible evolution to greed and hurting the common person who just needs or wants a home. No wonder we have such a housing shortage and homeless crisis. This, I am sorry to say, is what America has come to.

[johnben]

In order to buy cheaply, I'm waiting for a housing crisis after selling a few houses in 2020. I've been considering buying stocks as a fallback. Do you have any advice on when is the greatest time to make a purchase? On one hand, I continue to see and read about traders making more than $$$k per week. On the other hand, I constantly hear that the market is crazy and in the midst of a dead cat bounce. What causes this?

[macscotty]

I was born in 1941, not many years after The Great Depression. I have seen disregard for common economic sense by banks and consumers for many years. Unjustified Inflation of stock values and real estate prices by greedy people who only think in the short term. We can not depend on the inept people in government to instigate viable polcies and solutions. Consumers, financial investment sales people and real estate sales people needed to be more responsible! Now it is too late, the rooster has come home to rest! Perhaps another Great Depression? Who am I? Just an unimportant man who ran small companies in Silicon Valley for many years.

[JackAndrea.]

Things appear strange right now. The value of the US dollar is declining due to inflation, but it is increasing in comparison to other currencies and commodities such as gold and real estate. People are flocking to the dollar because they believe it is safer. I'm worried that rising inflation will cause my $420, 000 in retirement funds to lose value. What else could we do with our money?

[anacap]

There's always a universal question that's never asked nor answered by anybody mainstream: Where did all this cheap money come from? It's the central bank. They are the sole source of economic bubbles and their inevitable crashes. It's not greed or fear; they are always there. It's the artificial incentives that are put in place by government policy or regulation along with a complicit central bank willing to monetize debt that creates excessive greed.

[jakeglenn]

Thanks, What time frame are you estimating? 2024?

[bobbymainz]

With rates climbing like never before in ’23 coupled with uncontrollable inflation, and our own mortgage at now 7.5% what are the best alternatives/strategies for avoiding a crunch and maximize my $600k savings other than moving in to an RV with my two kids and wife.

[Khanfuzed]

Everyone just ignores the fact that money printing changes the equation

[benitabussell]

In the current economic climate, a home is not the best investment. I've already sold my Boca Grande area home, but I want to invest roughly $200, 000 in stocks since I've heard that even in challenging times, investors may turn a profit. Any excellent ideas for stocks?

[charlescurran]

Abusing leverage. Now where have I heard that before? 1929 maybe?

[KEN-duiz]

I've tried for a few weeks now trying to figure out how these corporations are able to own so many homes that are not rented and not selling currently and I don't know how they're doing it I'm some point they have to turn a profit we're going to have to dump them.

I sold my home 6 months ago knowing at the market would probably go up however I had an outgrown it and the neighborhood was coming worse and worse. Long story short as I look now for a place I have given up and started looking into rentals and as I look I realize there are more rentals than there are homes for sale and a lot if not 60% of the rentals offered for sale or new homes that were purchased by these large rental companies or property management companies and are simply just put up for rent once you average out of payment rather finance it over renting every single one of them are within two to $300 of each other. Simply put there just under what it would cost to actually finance it for 20% down. You can actually figure that out and make a video and that would be fantastic other than that I don't understand why nobody is talking about it I have to imagine it's probably similar everywhere across the United States.

[terrywatson]

Overpriced homes will be the nail in the coffin to equity and generational wealth. Homeowners will feel the excruciating pain of home repairs without the aid of home equity loans and High interest rate loans👈